Eighteen states are now considering legislation that would bar retailers from imposing surcharges when consumers use credit cards. The state-level proposals come in the wake of new rules that allow would merchants–for the first time ever–to impose surcharges on MasterCard and Visa purchases that could help them recoup the swipe fees they pay to the card networks. Prior to the rule change, 10 states had already imposed bans on credit card surcharges, which limited the potential impact of the new rules. Proposals to outlaw the fees are pending in Arkansas, Hawaii, Illinois, Indiana, Kentucky, Maryland, Michigan, Missouri, Nevada, New Jersey, New Mexico, Pennsylvania, Rhode Island, South Carolina, Tennessee, Utah, Vermont and West Virginia. Few, if any, merchants have yet to add surcharges to card transactions because most fear that doing so would spark a customer backlash, sending business to their competitors. Indeed, the proposals to ban surcharging are being touted by their backers as consumer-protection measures. Still, merchants fiercely oppose the bills because, if passed, their options for recovering income lost to interchange would be limited. [American Banker]

Lowest Credit Card Delinquency Rate in 18 years

Credit card delinquencies have reached an 18-year low, signaling that more cardholders are paying their bills on time. The number of accounts that were 30 days or more overdue dropped to 2.47% in the fourth quarter of 2012, according to the American Bankers Association. This was down from 2.75% in the third quarter and represents the lowest level since 1994. The delinquency rate for credit cards peaked at 5.01% in 2009, but the rate has dropped rather steadily since then. [LowCards.com]

MasterCard Pins ATM Fraud on Owners

Thousands of ATM owners, from megabanks to mom-and-pop operators, could be on the hook for millions in fraud losses if they miss a deadline this month to upgrade their machines. The shift will come if the owners fail to meet an April 19 deadline set by MasterCard for ATMs to authenticate debit-card transactions using computer chips rather than magnetic stripes. The April 19 deadline applies only to MasterCard-branded debit cards that are issued by overseas banks and used at U.S. ATMs. That is roughly 1% of all U.S. ATM transactions, or roughly 60 million swipes a year. If the ATMs aren’t upgraded, the owners will be financially responsible for fraudulent transactions linked to those cards. While withdrawals are typically limited to less than $1,000, the losses could mount quickly; one sizable fraud could wipe out the annual profits for a machine, according to industry experts. [Wall Street Journal]

Forget Credit Cards; PayTango Lets You Pay by Fingerprint

The idea is simple (and absolutely terrifying): Take your fingerprints, upload them to a database somewhere, then have that information connected to whatever mode of payment you so desire. Pow–just scan your fingerprint to pay. You’ll never have to worry about whether you’ve brought sufficient cash or have the right credit cards again. As is often the case with cool new start-ups revolving around unusual ideas, the people responsible for PayTango are not, in fact, seasoned veterans of the field, but are instead four students from Carnegie Mellon University. [Tech Hive]

Healthcare Credit Cards Wane with More Insured Patients

The era of healthcare-related credit cards has waned since the Great Recession, accelerated in part by the likelihood of greater access to insurance starting next year. For instance, Chase, Capital One and Humana all have discontinued their credit programs for healthcare, the article noted. However, industry observers say more patients put off healthcare procedures during the peak of the recession, and the implementation of much of the Affordable Care Act next year will likely curb demand even more. [Fierce Health Finance]

New Malware Steals Credit Card Data from Point-of-Sale Systems

Computer security firm McAfee says it has discovered a new type of malware that aims to steal credit card data from computer systems used in retail stores. The malware, a Trojan horse variety, is being called “vSkimmer.” Once installed on a checkout computer, it collects data entered into the system. The malware then sends the personal information to a central command server where it can be used by hackers who track infected computers. McAfee says the hackers steal information stored on the black magnetic strip used on credit cards. The security firm says today’s security threats are “more sophisticated and targeted than ever,” growing at an unprecedented rate. [LowCards.com]

Bank of America Tops Financial Complaint List

Bank of America accounted for the largest share of consumer complaints lodged with the Consumer Financial Protection Bureau over the past 16 months, highlighting the challenges the nation’s second-largest bank faces as it tries to simplify its sprawling operations. The CFPB’s expanded database shows the majority, or nearly 55%, of the more than 90,000 complaints filed with the agency relate to mortgages, the latest indication of the problems banks face in response to a surge in foreclosures. Credit cards ranked as the second-biggest source of complaints, accounting for almost 22% of the total. The biggest source of complaint leveled against Bank of America related to mortgages, with the bank accounting for about 31% of all mortgage-related complaints. [Wall Street Journal]

LowCards.com Weekly Credit Card Rate Report

Based on the 1000+ cards in the LowCards.com Complete Credit Card Index, the average advertised APR for credit cards is 14.29 percent, identical to last week’s average. Six months ago, the average was 14.32 percent. One year ago, the average was 14.33 percent. [LowCards.com]

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